Tencent Holdings is going back to the well. The Chinese internet and gaming giant has appointed banks to arrange a dual-currency bond offering targeting roughly $4 billion, marking its first dollar-denominated bond sale since April 2021.
That five-year absence from dollar bond markets is notable for a company of Tencent’s size. And the appetite appears to be there: order books reportedly blew past $6 billion shortly after launch, suggesting investors were more than ready to lend.
The deal structure
The offering spans two currencies and four different maturities. On the US dollar side, the company is issuing notes with 10-year and 20-year tenors. The offshore yuan (CNH) portion includes 10-year and 30-year maturities.
Initial price guidance puts the 10-year dollar tranche at US Treasuries plus 80 basis points, with the 20-year at Treasuries plus 90 basis points. For the yuan-denominated notes, the 10-year is guided at around 2.95%, while the 30-year sits at approximately 3.55%.
